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(Created page with "==Procedure== #The withholding agent is required by the Income Tax Act to pay to URA the tax withheld (or that should have been withheld), within 15 days after the end of the...")
 
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==Procedure==
 
==Procedure==
#The withholding agent is required by the Income Tax Act to pay to URA the tax withheld (or that should have been withheld), within 15 days after the end of the month in which the payment was made.  
+
Withholding tax is a form of income tax. This tax is deducted at source by one person upon effecting payment to another person. The person making payment is obliged to withhold tax and is referred to as a withholding agent and the person receiving payments from which tax is required to be withheld is the payee. The law stipulates the persons who are required to withhold the tax and the persons from whom the tax is withheld. This depends on the nature and the circumstances of the transaction.<br>
 +
'''HOW TO APPLY'''<br>
 +
#The withholding agent is required by the Income Tax Act to pay to URA the tax withheld (or that should have been withheld), within 15 days after the end of the month in which the payment was made.
 
#In the case of a person about to leave Uganda, the tax should be withheld and paid before the payee leaves.
 
#In the case of a person about to leave Uganda, the tax should be withheld and paid before the payee leaves.
 
#The agent is further required to maintain and avail for inspection by URA, records of all payments to the payee(s) and the corresponding tax withheld for five years after the end of the year of income to which such records relate.
 
#The agent is further required to maintain and avail for inspection by URA, records of all payments to the payee(s) and the corresponding tax withheld for five years after the end of the year of income to which such records relate.
#Upon receiving the payment of tax, URA should issue, to the payee a Tax Credit Certificate, setting out the tax withheld. The withholding agent is required to obtain from URA and deliver the tax credit certificate to the payee.
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#Upon receiving the payment of tax, URA should issue, to the payee a Tax Credit Certificate, setting out the tax withheld. The withholding agent is required to obtain from URA and deliver the tax credit certificate to the payee.
  
  
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==Office Locations & Contacts==
 
==Office Locations & Contacts==
 
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'''UGANDA REVENUE AUTHORITY'''<br>
Uganda Revenue Authority<br>
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URA Headquarters’: Plot M193/M194,<br>
P.O. Box 7279 Kampala, Uganda<br>
+
Nakawa Industrial Area,<br>
Telephone: (0417)442-054, 442-055, 443-150<br>
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P.O. Box 7279, Kampala<br>
Email: info@ura.uo.ug<br>
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Phone: +256 414744000, 0800117000 (toll free)<br>
URA TOLL FREE HELPLINE: 0800 117 000
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Email: [[info@ura.go.ug]]<br>
 +
Website: [https://www.ura.go.ug UGANDA REVENUE AUTHORITY]<br><br>
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Other officers [https://www.ura.go.ug/Resources/webuploads/GNRART/List%20of%20%20URA%20Service%20Offices.pdf List]
  
  
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==Documents to Use==
 
==Documents to Use==
*DT-1001-TIN individual registration form<br>
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[https://www.ura.go.ug/header/headerMain.jsp?viewPageNo=5&jsp=sitemap withholding tax Form]<br>
https://www.ura.go.ug/manageManualForm.do?dispatch=openFile&formId=16
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'''NOTE'''<br>
 
+
Scroll down and locate the application form '''Withholding Tax Return Form''' DT-2006
  
  
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==Related Videos==
 
==Related Videos==
http://www.youtube.com/watch?v=MCqUYXsnm3E
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Videos explaining the procedure or to fill the applications.
 +
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites.
 +
Please remove the '&' inside the tags during implementation.
 +
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
 +
sevenload, viddler, vimeo, youku, youtube
 +
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
 +
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.
 +
 
  
  
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==Instructions==
 
==Instructions==
*The payer must remit to the Commissioner General the tax withheld on or before the 15th day of the month following the month in which the payment subject to withholding tax is made.
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Every person who imports goods into Uganda is liable to pay '''withholding tax''' at the time of importation on the Customs Value of the good at 6%. A resident person who pays management or professional fees to a resident person is required to '''withhold tax''' at a rate of 6 percent of the gross amount of the payment.
*However, for promoters or non resident or sports entertainers, tax withheld must be paid within 5 days after the performance or not later than the departure date from Uganda of the non resident.
 
*The Income Tax Act Cap 340 s 124 specifies that if a withholding agent fails to withdraw the tax from payments made,they become personally liable for the tax.
 
*The withholding agent is required to keep the records of payment and withholding for 5 years
 
  
  
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==Need for the Document==
 
==Need for the Document==
Withholding tax is a form of income tax deducted at source of income by one person upon effecting a payment to another.
+
*Withholding tax is a form of income tax deducted at source of income by one person upon effecting a payment to another.
  
The withholding agent (person effecting the payment) is supposed to make the payment of tax.
 
 
The obligation to withhold tax lies with a withholding agent who is defined as  any person required to withhold tax upon making any payment to a payee
 
  
 +
==Information which might help==
 +
Withholding tax should be considered when making the following payments:<br>
 +
*Employment income (PAYE)
 +
*Goods and Services
 +
*Imports Professionals fees
 +
*Interest
 +
*Dividends
 +
*Rent
 +
*Natural resource payments
 +
*Royalty
 +
*Management charge
 +
*Ugandan-source services contract
 +
*10% should be withheld by Resident persons who purchase assets from non-resident persons
  
 
 
==Information which might help==
 
http://cars2uganda.com/importing-a-car-to-uganda/
 
  
  
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==External Links==
 
==External Links==
East Africa <br>
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[https://www.ura.go.ug/index.jsp Uganda revenue authority]<br>
https://www.pwc.com/en_RW/rw/pdf/east-african-tax-guide-2011-2012.pdf<br><br>
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[https://www.ura.go.ug/openFile.do?path=//webupload//upload//download//staticContent//RGTMENU//306//1035_Withholding_Tax.pdf With holding tax]
U.S<br>
+
 
http://www.taxesforexpats.com/uganda/us-tax-preparation-in-uganda.html<br>
 
http://www.africa-uganda-business-travel-guide.com/withholding-tax-in-uganda.html<br>
 
http://www.monitor.co.ug/Business/Commodities/-/688610/1083788/-/bx0r5m/-/index.html
 
  
  
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==Others==
 
==Others==
More information which might help people.
+
'''FAILURE TO WITHHOLD AND/OR REMIT THE TAX (SEC. 123 & 124 ITA)'''<br>
 +
A withholding agent who fails to withhold tax is personally liable to pay to the Commissioner the amount of tax which has not been withheld and/or remitted to URA. The agent, however, is entitled to recover the amount from the payee thereafter.<br><br>
 +
'''PRIORITY OF TAX WITHHELD (SEC. 127 ITA)'''<br>
 +
Like any other Government tax, the tax withheld is held by a withholding agent in trust for the Government of Uganda. It is therefore not subject to attachment in respect of a personal debt or liability of the agent and it does not form part of the estate of the agent in event of liquidation or bankruptcy and the Commissioner shall have a first claim before any distribution of property is made.
  
  

Revision as of 09:44, 2 September 2019

Procedure

Withholding tax is a form of income tax. This tax is deducted at source by one person upon effecting payment to another person. The person making payment is obliged to withhold tax and is referred to as a withholding agent and the person receiving payments from which tax is required to be withheld is the payee. The law stipulates the persons who are required to withhold the tax and the persons from whom the tax is withheld. This depends on the nature and the circumstances of the transaction.
HOW TO APPLY

  1. The withholding agent is required by the Income Tax Act to pay to URA the tax withheld (or that should have been withheld), within 15 days after the end of the month in which the payment was made.
  2. In the case of a person about to leave Uganda, the tax should be withheld and paid before the payee leaves.
  3. The agent is further required to maintain and avail for inspection by URA, records of all payments to the payee(s) and the corresponding tax withheld for five years after the end of the year of income to which such records relate.
  4. Upon receiving the payment of tax, URA should issue, to the payee a Tax Credit Certificate, setting out the tax withheld. The withholding agent is required to obtain from URA and deliver the tax credit certificate to the payee.



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Required Documents

  • Completed and filed withholding tax registration form
  • Tax Identification Number (TIN)
  • Identification documents



Office Locations & Contacts

UGANDA REVENUE AUTHORITY
URA Headquarters’: Plot M193/M194,
Nakawa Industrial Area,
P.O. Box 7279, Kampala
Phone: +256 414744000, 0800117000 (toll free)
Email: info@ura.go.ug
Website: UGANDA REVENUE AUTHORITY

Other officers List



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Eligibility

  • Government of Uganda.
  • A government institution.
  • A local authority.
  • Any company controlled by the Government of Uganda, or
  • A designated person in notice by Ministry of Finance.
  • Any company in which the Government of Uganda has interest

Paying an amount or amounts exceeding one million shillings, in aggregate, to a person in Uganda for supply of goods or services



Fees

  • free of charge



Validity

3 to 30 working days


Documents to Use

withholding tax Form
NOTE
Scroll down and locate the application form Withholding Tax Return Form DT-2006



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Sample Documents

https://www.ura.go.ug/manageManualForm.do?dispatch=openFile&formId=16



Processing Time

2 to 5 working days



Related Videos

Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites. 	
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.



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Instructions

Every person who imports goods into Uganda is liable to pay withholding tax at the time of importation on the Customs Value of the good at 6%. A resident person who pays management or professional fees to a resident person is required to withhold tax at a rate of 6 percent of the gross amount of the payment.



Required Information

  1. Name
  2. Address
  3. Marital status
  4. Date/Country/place of birth
  5. Sources of income
  6. Type of business activity
  7. Tax agent
  8. Referee



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Need for the Document

  • Withholding tax is a form of income tax deducted at source of income by one person upon effecting a payment to another.


Information which might help

Withholding tax should be considered when making the following payments:

  • Employment income (PAYE)
  • Goods and Services
  • Imports Professionals fees
  • Interest
  • Dividends
  • Rent
  • Natural resource payments
  • Royalty
  • Management charge
  • Ugandan-source services contract
  • 10% should be withheld by Resident persons who purchase assets from non-resident persons



Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.



External Links

Uganda revenue authority
With holding tax



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Ads by Google

Others

FAILURE TO WITHHOLD AND/OR REMIT THE TAX (SEC. 123 & 124 ITA)
A withholding agent who fails to withhold tax is personally liable to pay to the Commissioner the amount of tax which has not been withheld and/or remitted to URA. The agent, however, is entitled to recover the amount from the payee thereafter.

PRIORITY OF TAX WITHHELD (SEC. 127 ITA)
Like any other Government tax, the tax withheld is held by a withholding agent in trust for the Government of Uganda. It is therefore not subject to attachment in respect of a personal debt or liability of the agent and it does not form part of the estate of the agent in event of liquidation or bankruptcy and the Commissioner shall have a first claim before any distribution of property is made.

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